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Toyota tightens oversight over scandal-hit small car unit Daihatsu

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Daihatsu Motor will streamline the way it reports to Toyota, as the parent company increases oversight after a safety test certification scandal, and with the kei car maker planning to build EVs.

TOKYO — Japan's Daihatsu Motor said on Monday it will streamline the way it reports on development and certification to Toyota Motor, as the parent company increases oversight of its compact car division and seeks to overcome a safety test certification scandal.

The business structure changes include dissolving the Emerging-market Compact Car Company , which has served as a bridge between Toyota and Daihatsu until now. Toyota's domestic sales slid by a third in February due to production stoppages at Daihatsu, which makes some Toyota brand cars, and due to the reputational fallout from the safety certification lapses at its unit.

 

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